With the markets acting more like an amusement park ride than a leading economic indicator, you’re probably questioning whether or not to bail on your investments right about now. It seems like the market can’t go up, no matter what happens.
First, let me tell you that you shouldn’t be looking at your accounts, or the stock market, every single day. It will make you crazy during turbulent times like we are having right now. Having said that, this is also a good time to review your portfolio. There might be some great companies that you don’t own that have dropped in price that now look reasonable to buy.
Regardless, you should have a plan in place that will remove emotion from your investment decisions. If you’re plan says to stick to your investments, then stick to your investments. It is a fool’s game to punch out of the markets now and then try and decide when to get back in. There are investors still trying to pick their entry point after bailing out during the great recession in 2008/2009.
Finally, here is a good rule of thumb: Any money that you need to use within the next 18 months should never be in the stock market. Keep it in your money market or checking/savings accounts. That way, you can weather any storm (see picture above) the market throws at you without having to sell when you shouldn’t.
Stop fretting and enjoy the hap, hap, happiest time of the year!!
Joe Baker, CFP®
Baker Asset Management, LLC
joebaker@bakerassetmanagement.com
